Pakistan Sees Major Drop in Default Risk, Ranked 2nd Globally in Investor Confidence Gains

Pakistan has seen one of the biggest drops in its default risk, ranking second globally after Turkiye, according to Bloomberg data shared by Finance Minister’s Adviser Khurram Schehzad. 

The country’s default probability has fallen by 22 percent, or 2,200 basis points, over the past fifteen months from June 2024 to September 2025. 

This steady improvement, measured through Credit Default Swaps, reflects growing investor confidence in Pakistan’s economy.

Schehzad said the decline is supported by stronger macroeconomic stability, timely debt payments, and continued reforms under the International Monetary Fund program. 

Global rating agencies such as S&P, Fitch, and Moody’s have also upgraded their outlook for Pakistan.

He added that Pakistan stands out as the only emerging market showing consistent quarterly progress, ahead of countries like South Africa and El Salvador. 

The sharp improvement marks Pakistan’s gradual recovery and rebuilding of market credibility.